Tata Group company TRF Ltd on Tuesday, October 17, announced the sale of its Sri Lankan subsidiary, Dutch Lanka Trailer Manufacturers Ltd, to United Motors Lanka Plc at a valuation of Rs 19 crore, sending its shares more than 10 percent higher to hit a 52-week peak.

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The stock surged by 10.48 percent to hit a year’s high of Rs 265.50 on BSE in morning deals as trading volume spurted by 3.67 times following the announcement.

TRF Ltd, in a filing to exchanges, stated that TRF Singapore Pte Ltd and a wholly-owned subsidiary of TRF Ltd have signed a share purchase agreement to sell its entire stake in the Sri Lankan subsidiary.

The deal includes the sale of Dutch Lanka Trailer Manufacturers Ltd (DLT) and its 100 percent subsidiary Dutch Lanka Engineering (Pvt) Ltd, to United Motors Lanka PLC.

The sale is for a consideration value of LKR 700 million (Rs 19 crore) for share consideration of DLT along with DLE with closing adjustments excluding Rs 27 crore of cash in the form of fixed deposits relating to the previous divestment of its investment in Tata International DLT Pvt Ltd, the filing stated.

DLT with a net worth of Rs 41.97 crore had reported a consolidated turnover of Rs 75.77 crore for FY2022-23. Its consolidated profit before tax from operation was Rs 13.37 crore in FY23.

United Motors Lanka PLC, Sri Lanka, is one of the oldest automobile companies and the sole distributor of Mitsubishi vehicles in Sri Lanka.

“This transaction is subject to approval of the shareholders of the Company,” TRF Ltd said.

Tata group company TRF Ltd has three business units which cater to the material handling requirements of customers in the core infrastructure sectors of the economy. It undertakes turnkey projects for infrastructure development industries such as power and steel plants, cement, ports, fertilizers and mining.

TRF shares are trading 8.7 percent higher at Rs 261.20 on BSE at 11.30 AM.